Furfural Market

Market Definition

The market comprises the production, formulation, and application of furfural, an organic compound derived from agricultural byproducts such as corncobs, oat husks, and sugarcane bagasse. Produced through the acid hydrolysis of pentosan-rich biomass, furfural is a key intermediate in the synthesis of furan-based chemicals.

It is primarily used in the production of furfuryl alcohol, tetrahydrofuran, and specialty resins, with applications in foundry sand binders, pharmaceuticals, agrochemicals, and lubricants. Additionally, its solvent properties make it valuable in refining lubricating oils and as a selective extraction agent in petrochemical applications.

Furfural Market Overview

The global furfural market size was valued at USD 568.3 million in 2023 and is projected to grow from USD 606.8 million in 2024 to USD 1,004.8 million by 2031, exhibiting a CAGR of 7.47% during the forecast period.

The growth of the market is driven by increasing demand for bio-based chemicals across industries, particularly in pharmaceuticals, agrochemicals, and resins. Advancements in biomass processing technologies are enhancing furfural production efficiency, reducing costs, and expanding its application scope.

Additionally, stringent environmental regulations promoting the use of sustainable and non-petroleum-based chemicals are prompting industries to adopt furfural as a renewable alternative.

Major companies operating in the furfural industry are Central Romana Corporation, Lenzing AG, Hongye Holding Group Corporation Limited, Silvateam S.p.a., KANTO KAGAKU, Kishida Chemical Co., Ltd., A.B. Enterprises, Merck KGaA (Sigma-Aldrich), Santa Cruz Biotechnology, Inc., Shandong Hanteng International Trade Co., Ltd., Thermo Fisher Scientific Inc. (Alfa Aesar), Xingtai Chunlei Furfuryl Alcohol Co., Ltd., Guangdong Zhuli Casting Materials Technology Co., Ltd., International Furan Chemicals B.V, Central Drug House, and others.

The growing focus on bio-based energy solutions is increasing furfural’s relevance in biofuel production, contributing to market expansion. The global transition to renewable energy sources is driving research and development into furfural-based biofuels.

Organizations investing in sustainable energy technologies are exploring furfural’s potential in improving fuel efficiency and reducing carbon emissions. This emerging application is positioning furfural as a critical feedstock for next-generation renewable energy solutions.

• In January 2023, a research team at Khalifa University explored a scalable electrochemical process for converting furfural into fuel. The team developed a highly efficient catalyst that enables high-yield production of furoic acid and furfural alcohol, key compunds used in corrosion-resistant glass, acid-proof bricks, and plasticizers.  This advancement enhances industrial feasibility for value-added chemical production under optimized conditions.

Key Highlights:

1. The global furfural market size was recorded at USD 568.3 million in 2023.
2. The market is projected to grow at a CAGR of 7.47% from 2024 to 2031.
3. Asia Pacific held a share of 45.09% in 2023, valued at USD 256.2 million.
4. The corncobs segment garnered USD 364.2 million in revenue in 2023.
5. The quaker batch process segment is expected to reach USD 566.9 million by 2031.
6. The solvents segment secured the largest revenue share of 34.09% in 2023.
7. The pharmaceutical industry is poised for a robust CAGR of 8.60% through the forecast period.
8. North America is anticipated to grow at a CAGR of 7.85% during the forecast period.

Market Driver

"Rising Adoption in the Food and Beverage Industry"

The food and beverage industry is increasingly using furfural as a flavoring agent and food additive, supporting market expansion. Furfural enhances the aroma and taste of various food products, including baked goods, beverages, and confectionery. Regulatory approvals for furfural-based additives in food processing are strengthening its presence in this sector.

The rising consumer demand for natural food ingredients is prompting manufacturers to integrate furfural into their formulations. Additionally, its application in food packaging materials is expanding due to its role in improving the barrier properties of bio-based packaging solutions.

A study conducted by researchers at the University of Bologna, Italy in August 2024, highlighted that bio-based blends of poly (pentamethylene furanoate) (PPeF) and poly (hexamethylene furanoate) (PHF) offer a sustainable solution for flexible food packaging.

These polymers are derived from furandicarboxylic acid (FDCA), a key derivative of furfural, reinforcing furfural’s growing adoption in biopolymer development. As demand for eco-friendly packaging materials rises, the increased utilization of furfural-based polymers is propelling market growth, positioning furfural as a crucial feedstock in the transition to bio-based and biodegradable packaging solutions.

Market Challenge

"Inconsistent Quality and Composition of Feedstock"

A critical challenge in the furfural market is the inconsistency in the quality and chemical composition of lignocellulosic feedstocks, such as corncobs and sugarcane bagasse, which directly impacts yield efficiency and production costs. Variations in cellulose, hemicellulose, and moisture content require continuous process adjustments, increasing operational complexity.

To mitigate this issue, several companies are investing in advanced pre-treatment technologies, such as steam explosion and acid hydrolysis, to standardize feedstock composition. Additionally, firms are establishing dedicated biomass supply chains with stringent quality control measures, ensuring a consistent raw material supply that optimizes furfural yield and enhances process efficiency.

Market Trend

"Increasing Investments in Renewable Chemicals"

Rising investments in renewable chemicals are creating opportunities for the growth of the furfural market. Companies are expanding production capacities and exploring new applications for furfural derivatives such as tetrahydrofuran (THF), furan resins, and bio-based solvents.

The growing demand for renewable materials in adhesives, coatings, and high-performance polymers is increasing furfural consumption. Government incentives for bio-based chemical production and corporate sustainability commitments are leading to increased investments in the furfural industry.

• In August 2024, the U.S. Department of Defense (DoD) launched the Distributed Bioindustrial Manufacturing Program to strengthen supply chain resilience for food, fuel, and chemicals. The program allocated USD 23 million to support 13 startups in developing pilot plants for bio-based products, with each receiving up to USD 2.5 million. Promising projects may secure follow-on funding of up to USD 100 million. The DoD plans to finance over 30 projects through this initiative.

Furthermore, strategic partnerships between chemical manufacturers and end-use industries are accelerating commercialization, strengthening the global supply chain, and expanding market penetration.

Furfural Market Report Snapshot

Market Segmentation

• By Raw Material (Corncobs, Sugarcane Bagasse, Rice Husks, Oat Husks, and Others): The corncobs segment earned USD 364.2 million in 2023 due to its high hemicellulose content for efficient furfural yield, and its widespread availability as an agricultural residue, which reduces raw material costs and supports large-scale production.
• By Process (Quaker Batch Process, Chinese Batch Process, and Others): The quaker batch process segment held a share of 56.48% in 2023, fueled by its higher extraction efficiency, precise process control, and ability to handle diverse lignocellulosic feedstocks, ensuring consistent furfural yield and cost-effective production at an industrial scale.
• By Application (Solvents, Resins, Agrochemicals, Pharmaceuticals, and Others): The solvents segment is projected to reach USD 281.4 million by 2031, owing to its extensive use in refining lubricating oils, resins, and specialty chemicals, supported by growing demand in pharmaceutical, agrochemical, and industrial applications that require bio-based and eco-friendly solvent alternatives.
• By End Use Industry (Chemical Industry, Petroleum Refineries, Pharmaceutical Industry, and Agriculture): The pharmaceutical industry segment is set to grow at a CAGR of 8.60% through the forecast period, attributed to its increasing utilization in synthesizing pharmaceutical intermediates, including furan-based drugs and solvents, aided by the rising demand for bio-based chemicals in drug formulation.

Furfural Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

The Asia Pacific furfural market share stood at around 45.09% in 2023, valued at USD 256.2 million. The expansion of the pharmaceutical and agrochemical sectors in Asia-Pacific due to increasing investments in research and development is bolstering this growth. Furfural derivatives, such as furoic acid and tetrahydrofuran (THF), are finding applications in drug formulations and pesticide production.

China and India, being major pharmaceutical and agrochemical hubs, are experiencing rising demand for bio-based intermediates, positioning furfural as a key ingredient in specialty chemical synthesis. This trend is enhancing furfural consumption across high-value applications, contributing to regional market growth.

Additionally, several countries in Asia-Pacific are investing in integrated biorefineries to convert agricultural waste into high-value chemicals, including furfural. China, Thailand, and Malaysia are leading initiatives to develop bio-based industrial hubs that utilize lignocellulosic biomass for chemical production.

These projects aim to enhance resource efficiency and reduce dependence on fossil-based feedstocks, creating new opportunities for furfural manufacturers. The expansion of biorefineries is improving the scalability of furfural production, making it more accessible for various industrial applications.

• In July 2024, Petroliam Nasional Berhad (PETRONAS), Enilive S.p.A, and Euglena Co., Ltd. finalized their investment decision to establish a biorefinery within PETRONAS’ Pengerang Integrated Complex (PIC) in Malaysia. The facility will utilize waste and residue feedstocks, including used vegetable oils, animal fats, byproducts from vegetable oil processing, and other biomass sources, to produce bio-based fuels and chemicals.

North America is likely to grow at a CAGR of 7.85% over the forecast period. The rising demand for bio-based packaging materials is contributing to the increased use of furfural in the production of biodegradable plastics, such as polyethylene furanoate (PEF).

With North American brands and retailers shifting toward sustainable packaging solutions, furfural-based bioplastics are gaining traction as an alternative to conventional petroleum-derived polymers. Regulatory policies promoting eco-friendly packaging materials are further supporting the doemstic market expansion.

Furthermore, the U.S. Food and Drug Administration (FDA) has approved several bio-based polymers derived from furfural, such as polyethylene furanoate (PEF), for use in food packaging.

Companies like Avantium and Origin Materials are expanding their operations in the region to commercialize furfural-based biodegradable plastics. The push for sustainable packaging by major brands, including Coca-Cola and PepsiCo, is driving large-scale adoption.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) enforces the Toxic Substances Control Act (TSCA), requiring manufacturers to report and assess risks associated with furfural. Additionally, the Occupational Safety and Health Administration (OSHA) sets workplace exposure limits, while the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) classifies furfural as a hazardous substance, requiring strict handling and reporting procedures.
• The European Union regulates furfural under the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) framework, requiring manufacturers and importers to register the substance with the European Chemicals Agency (ECHA) for safe handling.
• In China, furfural is governed by the Regulations on the Safe Management of Hazardous Chemicals, enforced by the Ministry of Emergency Management (MEM). Producers and users must comply with strict safety standards for production, storage, and transportation. Additionally, the Ministry of Ecology and Environment (MEE) implements environmental laws aimed at minimizing industrial pollution from furfural processing. Regulatory compliance is crucial for companies operating in China's growing bio-based chemicals sector.
• Japan regulates furfural under the Chemical Substances Control Law (CSCL), which mandates risk assessment and environmental safety measures, overseen by the Ministry of Economy, Trade, and Industry (METI) and the Ministry of the Environment (MOE) oversee its implementation. Additionally, the Industrial Safety and Health Act (ISHA) sets strict guidelines for workplace exposure limits, ensuring safe handling in industrial applications while promoting compliance with global chemical safety standards.

Competitive Landscape

The furfural industry is characterized by a number of market players that are implementing strategies such as product innovation and acquisitions to strengthen their market position. Companies are investing in research and development to enhance production efficiency, develop high-purity furfural, and explore bio-based derivatives for diverse applications.

Strategic acquisitions and collaborations with biomass suppliers and chemical manufacturers are expanding supply chains and market reach. These initiatives are improving production capabilities, ensuring a steady supply of raw materials, and fostering technological advancements.

• In September 2024, AM Green Technology and Solutions B.V. announced binding agreements to acquire Chempolis Oy and Fortum 3 B.V. entities. AM Green plans to establish large-scale biorefineries utilizing diverse feedstocks to produce high-value green products supporting global decarbonization in aviation, fuels, chemicals, and industrial sectors. Chempolis' technology will enable the processing of second-generation waste feedstocks, facilitating the production of green chemicals such as ethanol, furfural, and pure lignin, aligning with AM Green’s vision to become a leading industrial decarbonization platform.

List of Key Companies in Furfural Market:

• Central Romana Corporation
• Lenzing AG
• Hongye Holding Group Corporation Limited
• Silvateam S.p.a. 
• KANTO KAGAKU
• Kishida Chemical Co., Ltd.
• B. Enterprises
• Merck KGaA (Sigma-Aldrich)
• Santa Cruz Biotechnology, Inc.
• Shandong Hanteng International Trade Co., Ltd.
• Thermo Fisher Scientific Inc. (Alfa Aesar)
• Xingtai Chunlei Furfuryl Alcohol Co., Ltd.
• Guangdong Zhuli Casting Materials Technology Co., Ltd.
• International Furan Chemicals B.V
• Central Drug House

Recent Developments (Expansion)

• In June 2023, Origin Materials launched Origin 1, the world’s first commercial chloromethyl furfural (CMF) facility, in Sarnia, Ontario. This milestone scales up the company’s technology, converting cellulose into chloromethyl furfural (CMF) and lignin into hydrothermal carbon (HTC). The plant utilizes woody biomass as its feedstock, reinforcing Origin’s commitment to sustainable and bio-based chemical production.